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Complete Guide to KYC Procedure in Online Casinos

October 5, 2023
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KYC (Know Your Customer) policy is mandatory in virtual casinos and gambling apps.

Following these rules protects online gambling platforms from monetary and reputational damage, not to mention players’ safety, which is taken to a new level.

While casino games and betting attract a huge number of enthusiasts around the world, they can be linked to money laundering, theft of sensitive information, and other fraudulent activity.

Therefore, operators must follow KYC standards and regulations. 

Keen to know more? Read this review to delve into the basics of Know Your Customer policies. You will learn how it works, what benefits operators/players have, and how to pass ID verification when signing up for new venues.

What is KYC?

The Know Your Customer policy has been used by gambling platforms for over a decade. It came about as a way to combat Anti-Money Laundering (AML).

Today, you will encounter a mandatory verification process at every gambling establishment when playing online. Verifying new customers allows operators to prevent financial crimes from the very beginning.

Know Your Customer Dicorative Image

Simply put, verification is a way to ensure that the customer is who they say they are. It is also a way to prevent fraudulent activity and money laundering. In this way, the virtual casino makes sure that you are only interested in games and bets.

However, Know Your Customer tools are not just about protecting the funds of a particular venue. Thanks to this policy, operators screen out underage users as well as players who have added themselves to the self-exclusion list.

This protects the casino from being used for criminal purposes and ensures that unscrupulous players will not cheat it.

Considering the above arguments, we can conclude that the KYC policy is very effective. Verification of players gives operators an insight into whether they are of legal gambling age in a particular jurisdiction and whether they are involved in fraudulent/illegal schemes.

This is how platforms fight AML and other violations.

Why KYC Matters in Online Casinos

Nowadays, online casinos are involved in big money transactions. They can handle millions of dollars daily, making them a target for money laundering and other illegal activities.

If players’ actions on a site are unregulated, there is nothing to stop fraudsters from achieving their goals.

There are several reasons gambling operators are closely monitoring and utilizing KYC policies:

⛔ AML. Money laundering can have disastrous consequences not only for the casino itself but also for the jurisdiction in which it operates.

For instance, the influx of large amounts of illegal money can cause the value of a nation’s currency to plummet. Handled in giant sums, casinos may seem an easy target for fraudsters if they do not face KYC policies.

⛔ Fraud prevention. The interaction between players and casinos is minimal in the virtual world. This increases the risk of fraudulent activity. It comes in various forms, including theft of winnings and even sensitive information.

The KYC tools allow operators to track suspicious characters by limiting or blocking their participation. 

⛔ Non-compliance fines. In addition to fraud and money laundering, operators run verification to meet growing regulatory requirements.

To stop problems emerging in the gambling world, official authorities are checking venues for compliance with stringent requirements. This often results in unimaginable fines.

These are the main reasons virtual casinos verify new customers and monitor their activity. This boils down to anti-fraud that also affects your personal safety while you enjoy your favorite games.

KYC Process in Online Casinos

When a new customer signs up at the casino, the procedure can seem simple and painless.

However, it is worth considering the processes that take place behind the scenes. Once completed, you must confirm your identity, and this requires your direct involvement.

Here’s what the KYC procedure looks like in practice:

1️⃣ Choose a casino that meets your expectations.

2️⃣ Go through the registration process. You must provide your personal details such as name, gender, date of birth, physical address, and contact details.

3️⃣ Access the KYC procedure. How you run the verification depends on the casino. In some cases, it is triggered automatically after registration, while in other establishments, you have to contact customer support.

4️⃣ Upload snapshots or scanned versions of your personal documents.

As you have realized, the fourth step is the most important. The essence of KYC verification is to ensure you are a real person and that the information provided in the registration form is correct.

You must confirm this by uploading one of the documents that the chosen casino accepts. The list typically includes passport/ID card, driver’s license, utility bills/bank statements (not older than six months). The document must prove your name, age, and address.

What’s next? The casino will now take the time to check your documents and verify their details against the ones you provided during registration. This usually takes no more than 48 hours.

If the document confirms your details, your casino account will be activated. This means you can make a deposit, get a bonus, and make your first bet. If the operator has any doubts about your age or the transparency of your actions, it may request additional proof of identity.

Benefits of KYC for Players

The policy benefits not only gambling establishments but also enthusiasts who join them. Although going through the process and uploading the documents may seem tedious, this is designed to protect your personal data and funds.

KYC Online Procedure

So, let’s see how KYC is useful for gamblers:

✅ It prevents underage gambling. Users cannot cheat the establishment. The document provided during verification must prove that you are of a legal gambling age before your account is activated.

✅ Assistance with responsible gambling. A continuous monitoring system helps the gambling operator to keep track of clients’ activity, identifying those who have started wagering large amounts.

They will be asked to provide a statement about the source of their wealth, and if the check recognizes them as problem gamblers with potential addiction, their participation will be suspended.

✅ Providing a safe gambling environment. However, the KYC aims to create a safe gambling environment. It actively combats financial crime, money laundering, and other forms of fraud. This provides enthusiasts with a safe and fun experience wherever they are.

KYC ensures you enjoy the best games without worrying about the safety of your winnings and personal data. It also fights against the involvement of minors and various forms of fraud.

Benefits of KYC for Casinos

Players interact a lot with land-based casinos. They buy and change chips, interact with dealers and other members, and more. It’s important for virtual operators to have something similar.

Verification is the best way to make sure a new customer is a real person of legal gambling age. There are several other benefits to consider.

✅ Avoiding penalties. The current gambling standards are skyrocketing, and official bodies are looking for venues that do not comply. The KYC policy must be presented in every gambling establishment. If it is not, the operator will be fined or even have its license revoked.

✅ Combating money laundering. Processing thousands of dollars every day, operators would rather not fall victim to fraudulent schemes. The KYC tools effectively detect suspicious customers by limiting or stopping their participation.

✅ Reputation. Casinos unable to protect their customers suffer great damage to their reputation. Therefore, operators do their best to provide a safe environment regardless of your location, device, and other nuances.

Modern gambling venues need the Know Your Customer policy more than ever before. This allows them to meet international requirements and standards while maintaining high security.

Common KYC Challenges

The verification procedure is apparent and simple in practice. The likelihood of something going wrong is extremely low. However, popular casinos receive many KYC applications every day, which can slow down your processing. Occasionally, it can take several business days.

Due to the high flow of applications, casino staff may lose yours. In this case, you have to upload the documents again. This takes more time, and plus, your account is considered not activated until the procedure is not done.

We recommend that you study the KYC policy of the chosen casino in detail before jumping directly into the procedure.

Tips for a Smooth KYC Experience

If you want to get through the verification process and start betting as soon as possible, here are some tips to use:

1️⃣ Prepare photos or scanned versions of your passport/ID card, driver’s license, or another document in advance.

2️⃣ Make sure they are of good quality so that casino staff can easily verify the data displayed on the documents.

3️⃣ Go through verification as soon as you register. This allows you to activate your account and start betting much faster.

Even though the time you spend on verification also depends on the casino’s workload, you can do some things to pass it as fast as possible. Prepare good-quality copies of your documents in advance and upload them as soon as you register.

Conclusion

Today, KYC verification is mandatory for most virtual casinos and gambling platforms. These tools are primarily aimed at combating money laundering, fraud, and the involvement of minors.

The Know Your Customer policy allows the operator to ensure it deals with a real person who has no interest in criminal activity.

The benefits to players are centered around the security they receive while betting. By tracking customer activity, the operator will block those that show suspicious activity.

At the same time, verification is effortless. You only have to provide copies of your documents and wait for them to be checked.